Marsh is considering selling its Private Client Services (PCS) unit in Asia, which specialises in financial risk management and life insurance for high-net-worth individuals, reported Bloomberg, citing sources. The insurer, previously known as Marsh & McLennan, is said to be working with an adviser on the potential sale as part of efforts to refine its global asset portfolio. According to sources, the PCS business, which operates under Marsh’s Mercer subsidiary, has attracted preliminary interest from b ...

Core Insights - US employees are increasingly choosing to remain with their current employers amid economic uncertainty and AI-related anxieties, presenting an opportunity for companies to foster long-term loyalty [1][2] Economic Pressures - Economic volatility is a significant concern, with 70% of US employees reporting increased financial stress due to inflation and market fluctuations [1] - The leading unmet needs among employees include covering monthly expenses, job security, retirement readiness, and work-life balance [1] - Short-term financial pressures have eased, with fewer employees reducing discretionary spending (38%, down from 51% in 2023) and tapping into savings (32%, down from 37% in 2023) [1] Pay and Benefits - Pay remains the strongest driver for both attraction (37%) and retention (32%), with healthcare benefits as the second most important factor [1] - More than 40% of candidates would not apply for jobs without disclosed pay ranges, indicating a shift towards pay transparency as a baseline expectation [1] AI Adoption and Employee Sentiment - Despite recognizing AI's potential, many employees are anxious about its impact on job security, with 53% believing new technology will affect their job security [1] - Only about 25% of employees regularly use AI tools, highlighting uneven adoption across industries, particularly in retail and healthcare [1] Industry Variations - Employee experiences vary significantly across industries, with lower-income and hourly workers facing heightened financial and mental health challenges [1] - High-tech and financial services sectors report stronger engagement, particularly among on-site workers and those with five to ten years of tenure [1] Flexibility and Engagement - Nearly 78% of employees can fully utilize their paid vacation time, and 70% feel that paid time off supports their mental health and family care needs [1] - Employee engagement remains high, with 73% not seriously considering leaving their organization, an increase from 68% in 2023 [1] Conditional Commitment - Employees are recommitting to their employers but with conditions, closely monitoring internal job postings and development opportunities [2]

Financial Performance - The Company reported an annual revenue of $27 billion in 2025, employing over 95,000 colleagues globally[16]. - Consolidated revenue in 2025 was $27.0 billion, an increase of 10%, or 4% on an underlying basis compared to 2024[211]. - Consolidated operating income increased by $406 million, or 7%, to $6.2 billion in 2025, reflecting a 10% increase in revenue and an 11% increase in expenses[212]. - Net income attributable to the Company was $4.2 billion in 2025, with diluted earnings per share increasing to $8.43 from $8.18, or 3%[211][213]. - The Company's effective tax rate for 2025 was 23.6%[211]. - The Company paid dividends on its common stock shares of $1.7 billion in 2025[211]. Revenue Segmentation - The Risk and Insurance Services segment accounted for approximately 64% of total revenue, employing around 55,700 colleagues[17]. - Marsh Risk generated approximately 54% of the Company's total revenue in 2025, employing about 52,000 colleagues[18]. - The Consulting segment generated approximately 36% of total revenue in 2025, with around 29,100 colleagues[29]. - Mercer, a key part of the Consulting segment, generated approximately 23% of total revenue in 2025, employing about 21,900 colleagues[30]. - Guy Carpenter, the reinsurance intermediary, generated approximately 10% of total revenue in 2025, employing around 3,700 colleagues[23]. - Risk and Insurance Services revenue in 2025 was $17.3 billion, an increase of 12%, or 4% on an underlying basis[211]. - Consulting revenue in 2025 was $9.8 billion, an increase of 7%, or 5% on an underlying basis[211]. Workforce and Talent Management - As of December 31, 2025, the company employed over 95,000 colleagues globally, with approximately 55,700 in Risk and Insurance Services and 29,100 in Consulting[52]. - Since the launch of the AI Academy in August 2024, more than 46,000 colleagues have received their AI Academy credentials[55]. - In July 2025, the company launched the leadership Mindset Academy, with nearly 15,000 colleagues completing the program to enhance leadership skills[55]. - The company conducted more than 400 in-person and virtual workshops aimed at strengthening professional and client skills, people management, and leadership capabilities[55]. - The company faces intense competition for talent, which has been exacerbated by flexible working models and aggressive recruitment tactics from competitors[118]. Acquisitions and Growth Strategy - Marsh McLennan Agency (MMA) has acquired more than 135 agencies since its first acquisition in 2009[21]. - The Company completed 20 acquisitions in 2025 for a total purchase consideration of $857 million[211]. - The Company has made a total of 102 acquisitions from 2021 to 2025, including McGriff Insurance Services and Gerolamo Holding, but faces integration and compliance risks[139]. Market Conditions and Competition - The Company faces intense competition across all its businesses, particularly in insurance and consulting sectors[48]. - The competitive landscape is evolving, with increased competition from Insurtech companies and traditional players leveraging technology to enhance client experiences and operational efficiencies[114]. - The property and casualty insurance market has seen softer pricing recently, which may continue to impact profitability[167]. - The emergence of third-party capital providers in the insurance market poses a threat to traditional brokerage services[129]. - Economic conditions, including slower GDP growth and inflationary pressure, may negatively impact demand for consulting services[174]. Risks and Compliance - The company faces significant uninsured exposures from errors and omissions, which could adversely affect its financial condition[72]. - Geopolitical and macroeconomic conditions, including wars and inflation, may reduce demand for the company's services or depress pricing, impacting results[73]. - The company is subject to risks related to compliance with privacy and data protection laws, which could adversely affect its financial condition and reputation[72]. - The company relies on a large number of vendors and third parties for key business functions, which may pose risks to its operations[72]. - The company is exposed to significant non-U.S. operations, which may lead to exchange rate fluctuations impacting business performance[75]. - Legal and regulatory risks include significant uninsured exposures from errors and omissions, which could lead to substantial liabilities[79]. - Compliance with extensive regulations may impose additional costs and operational limitations, potentially affecting revenues[82]. - Cybersecurity risks could lead to significant financial and reputational harm if information systems are breached[90]. - The company may incur investment losses due to fluctuations in interest rates and foreign exchange rates, adversely affecting results of operations[77]. - The company faces increasing risks from cyberattacks, including advanced persistent threats and the use of AI by adversaries to exploit vulnerabilities[92]. Financial Obligations and Debt - The company has significant defined benefit pension obligations totaling approximately $11.7 billion, with related plan assets of approximately $13.1 billion as of December 31, 2025[147]. - Total consolidated debt outstanding was approximately $19.6 billion as of December 31, 2025, which could adversely affect financial flexibility[155]. - The company's senior debt ratings are A- by S&P, A3 by Moody's, and A- by Fitch, with a stable outlook, but downgrades could increase financing costs[153]. Strategic Initiatives - The Company launched the Thrive program in 2025, focusing on brand strategy, client value, growth acceleration, and efficiency improvement[159]. - The Company cannot guarantee achieving targeted savings from the Thrive program, which may impact reinvestment in growth initiatives[160]. - The Company maintains a cybersecurity risk management program aligned with industry standards to protect sensitive information[182].

Financial Data and Key Metrics Changes - Total revenue grew 10% to $27 billion, with underlying revenue growth of 4% [4] - Adjusted operating income increased 11% to $7.3 billion, following an 11% growth in 2024 [4] - Adjusted operating margin improved by 30 basis points, marking the 18th consecutive year of margin expansion [4] - Adjusted EPS grew 9% [4] - Free cash flow increased by 25%, with capital deployment objectives achieved [5] Business Line Data and Key Metrics Changes - Risk and Insurance Services (RIS) revenue was $4 billion, up 9% year-over-year, with 2% underlying growth [18] - Marsh Risk revenue was $3.7 billion, up 10% from a year ago, or 3% on an underlying basis [18] - Guy Carpenter's revenue in the quarter was $215 million, up 7%, or 5% on an underlying basis [20] - Consulting segment revenue was $2.6 billion, up 8% or 5% on an underlying basis [20] - Mercer’s revenue was $1.6 billion, up 9% or 4% on an underlying basis [21] Market Data and Key Metrics Changes - Primary commercial insurance rates decreased 4% in Q4, following a 4% decline in Q3 [10] - Global property rates decreased 9% year-over-year, with financial and professional liability rates down 4% [10] - Global casualty rates increased 4%, with U.S. excess casualty up 19% [10] - Reinsurance market saw price decreases accelerate, with demand increasing 5%-10% depending on region [11] Company Strategy and Development Direction - The company aims to be the most impactful professional services firm globally, focusing on risk, reinsurance, capital, health, and management consulting [7] - The Thrive program is expected to provide greater financial flexibility and organizational agility over the next three years [7] - Investments are being made in digital infrastructure, healthcare, private capital, and energy [7][9] - The new Marsh brand was launched to simplify the value proposition for clients [8] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a complex operating environment characterized by geopolitical tensions and economic challenges [15] - Despite headwinds from lower interest rates and decreasing insurance pricing, the company is well-positioned for solid growth in 2026 [14] - The focus remains on navigating dynamic market conditions while leveraging strengths in talent and technology [15][16] Other Important Information - The company repurchased $2 billion in shares, the largest annual amount in its history [5] - Total debt at the end of the quarter was $19.6 billion, with strong free cash flow of $5 billion [24][25] - The adjusted effective tax rate for 2025 was 25.3%, with expectations for 2026 between 24.5% and 25.5% [24] Q&A Session Summary Question: Impact of AI and digital infrastructure investments on long-term revenue outlook - Management expects approximately $3 trillion of investment in digital infrastructure over the next five years, which is a focus area for the company [30] Question: Reinsurance market rate reductions and organic revenue growth - Management acknowledges the challenges posed by rate reductions but highlights strong demand in certain segments, particularly casualty [44][50] Question: AI's impact on headcount and project-related work - Thrive encompasses new AI technologies, which will enhance efficiency and support growth, but may also impact certain job families [54][56] Question: Talent situation and its impact on results - The company reports strong colleague retention and engagement, with plans to add market-facing talent [64][66] Question: Data center construction values and their impact on growth - Management believes that the investment in digital infrastructure will have a material impact on growth moving forward [67][70]

Financial Data and Key Metrics Changes - Total revenue grew 10% to $27 billion, with underlying revenue growth of 4% [4] - Adjusted operating income increased 11% to $7.3 billion, following 11% growth in 2024 [4] - Adjusted EPS grew 9% [4] - Free cash flow increased by 25% [5] - Adjusted operating margin improved by 30 basis points, marking 18 consecutive years of margin expansion [4] Business Line Data and Key Metrics Changes - Risk and Insurance Services (RIS) revenue was $4 billion, up 9% year-over-year, with 2% underlying growth [18] - Marsh Risk revenue was $3.7 billion, up 10% from a year ago, or 3% on an underlying basis [18] - Guy Carpenter's revenue in the quarter was $215 million, up 7%, or 5% on an underlying basis [20] - Consulting segment revenue was $2.6 billion, up 8% or 5% on an underlying basis [20] - Mercer revenue was $1.6 billion, up 9% or 4% on an underlying basis [21] Market Data and Key Metrics Changes - Primary commercial insurance rates decreased 4% in Q4, following a 4% decline in Q3 [10] - Global property rates decreased 9% year-over-year [10] - Global financial and professional liability rates were down 4%, while cyber rates decreased 7% [10] - Global casualty rates increased 4%, with U.S. excess casualty up 19% [10] Company Strategy and Development Direction - The company aims to be the most impactful professional services firm globally, focusing on risk, reinsurance, capital, health, and management consulting [7] - The Thrive program is expected to provide greater financial flexibility and organizational agility over the next three years [7] - Investments are being made in digital infrastructure, healthcare, private capital, and energy [7][9] - The new Marsh brand was launched to simplify the value proposition for clients [8] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a complex operating environment characterized by geopolitical tensions and economic challenges [15] - Despite headwinds from lower interest rates and decreasing insurance pricing, the company is well-positioned for solid growth in 2026 [14][26] - The company expects underlying revenue growth in 2026 to be similar to 2025 [14][26] Other Important Information - The company repurchased $2 billion in shares, the largest annual amount in its history [5] - Total debt at the end of the quarter was $19.6 billion [24] - The adjusted effective tax rate for 2025 was 25.3%, down from 25.9% in 2024 [23] Q&A Session Questions and Answers Question: Impact of AI and digital infrastructure investments on long-term revenue outlook - The company expects approximately $3 trillion of investment in digital infrastructure over the next five years, which is a significant focus area [30] Question: Reinsurance market rate reductions and organic revenue growth - Management acknowledges that while rate reductions in property cat pricing may pose challenges, there are still areas of demand and new business opportunities [44][50] Question: AI's impact on headcount and revenue in management consulting - Thrive will fuel efficiency and investment in market-facing talent, with ongoing development of productivity tools to enhance efficiency [54][56]

Financial Data and Key Metrics Changes - Total revenue grew 10% to $27 billion, with underlying revenue growth of 4% [3] - Adjusted operating income increased 11% to $7.3 billion, marking a continuation of growth from 2024 [3][14] - Adjusted EPS grew 9% to $9.75 for the full year [14] - Free cash flow increased by 25%, reaching $5 billion [4][21] Business Line Data and Key Metrics Changes - Risk and Insurance Services (RIS) revenue was $4 billion, up 9% year-over-year, with 2% underlying growth [15] - Consulting segment revenue was $2.6 billion, up 8% or 5% on an underlying basis [17] - Mercer’s revenue was $1.6 billion, reflecting a 9% increase or 4% on an underlying basis [18] - Marsh Management Consulting generated $1 billion in revenue, up 8% [19] Market Data and Key Metrics Changes - Primary commercial insurance rates decreased 4% in Q4, with property rates driving this decline [8] - Global property rates decreased 9% year-over-year, while global casualty rates increased 4% [8] - The property cat market softened, with price decreases accelerating at January 1 [9] Company Strategy and Development Direction - The company aims to be the most impactful professional services firm globally, focusing on risk, reinsurance, capital, health, and management consulting [5] - The Thrive program is designed to enhance financial flexibility and organizational agility, targeting investments in emerging areas like digital infrastructure and healthcare [5][6] - The new Marsh brand was launched to simplify the value proposition for clients [6] Management's Comments on Operating Environment and Future Outlook - The management highlighted a complex operating environment characterized by geopolitical tensions and economic challenges, but expressed optimism about future growth opportunities [12][70] - The company expects underlying revenue growth in 2026 to be similar to 2025, with continued margin expansion [11][23] Other Important Information - The company repurchased $2 billion in shares, the largest annual amount in its history [4] - The adjusted effective tax rate for 2025 was 25.3%, with expectations for 2026 between 24.5% and 25.5% [21][20] Q&A Session Summary Question: Impact of AI and digital infrastructure investments on long-term revenue outlook - Management expects significant investment in digital infrastructure, estimating around $3 trillion over the next five years, which presents a growth opportunity [26][27] Question: Concerns about strong rate reductions in reinsurance - Management acknowledged the challenges posed by rate reductions but emphasized strong demand in certain areas, particularly casualty [40][46] Question: Relationship between Thrive program and AI technologies - Thrive encompasses investments in AI and technology, aimed at enhancing efficiency and driving growth [49][52] Question: Talent situation and its impact on results - Management reported strong colleague retention and engagement, indicating that talent dynamics are not materially affecting results [60][62] Question: Future of data center construction and its impact on growth - Management expressed optimism about the digital infrastructure sector, indicating that it will contribute positively to growth in 2026 [63][64]

Revenue Growth - Consolidated revenue for Q4 2025 was $6.6 billion, a 9% increase compared to Q4 2024, with 4% underlying growth[4] - Full-year revenue for 2025 reached $27.0 billion, reflecting a 10% increase on a GAAP basis and 4% on an underlying basis compared to 2024[7] - Marsh Risk's revenue in Q4 2025 was $3.7 billion, a 10% increase, with underlying growth of 3% in the U.S./Canada and 4% internationally[9] - Risk & Insurance Services revenue for 2025 was $17.3 billion, a 12% increase, with adjusted operating income rising 12% to $5.5 billion[8] - Consulting revenue for Q4 2025 was $2.6 billion, an 8% increase, with adjusted operating income increasing 10% to $550 million[11] - Mercer’s revenue in Q4 2025 was $1.6 billion, a 9% increase, with wealth revenue growing 5% and health revenue increasing 6%[12] - Total revenue for the twelve months ended December 31, 2025, was $26,981 million, representing a 10% increase compared to $24,458 million in 2024[31] - Marsh Risk revenue for the twelve months ended December 31, 2025, was $14,366 million, a 15% increase from $12,536 million in 2024[32] - Mercer revenue for the twelve months ended December 31, 2025, was $6,190 million, an 8% increase from $5,743 million in 2024[32] - The company reported a 12% increase in total Risk and Insurance Services revenue, reaching $17,265 million for the twelve months ended December 31, 2025[31] - The company experienced a 10% increase in total revenue for the three months ended December 31, 2025, compared to the same period in 2024[31] Earnings and Income - Adjusted earnings per share for Q4 2025 increased by 10% to $2.12, benefiting from favorable tax items and foreign exchange[5] - For the full year 2025, adjusted EPS rose 9% to $9.75, compared to $8.97 in 2024[7] - Adjusted operating income for the three months ended December 31, 2025, was $1,566 million, with an adjusted operating margin of 23.7%[39] - Operating income for the twelve months ended December 31, 2025, was $6,223 million, with an operating margin of 23.1%[42] - Adjusted operating income for the same period was $7,297 million, reflecting an adjusted operating margin of 27.1%[42] - The company reported a net income before non-controlling interests of $4,234 million for the twelve months ended December 31, 2025, with an adjusted EPS of $9.75[46] - Net income before non-controlling interests for 2025 was $4,234 million, an increase from $4,117 million in 2024, representing a growth of 2.8%[53] Expenses and Cash Flow - Total expenses for the twelve months ended December 31, 2025, increased to $20,758 million from $18,641 million in 2024, representing a year-over-year increase of 11.4%[49] - Cash and cash equivalents as of December 31, 2025, were $2,687 million, up from $2,398 million in 2024, indicating a growth of 12.1%[51] - Operating cash flows increased to $5,292 million in 2025 from $4,302 million in 2024, marking a rise of 23.1%[53] - Total cash, cash equivalents, and cash held in fiduciary capacity at the end of 2025 was $14,160 million, up from $13,674 million at the end of 2024, an increase of 3.5%[53] - Total cash provided by investing activities was $(845) million in 2025, a decrease from $(8,821) million in 2024, showing improved cash flow management[53] Share Repurchase and Debt - The company repurchased 10.1 million shares for $2.0 billion in 2025[14] - The company repurchased treasury shares worth $2,012 million in 2025, compared to $900 million in 2024, indicating a significant increase in share buybacks[53] - Long-term debt decreased to $18,320 million in 2025 from $19,428 million in 2024, showing a reduction of 5.7%[51] Strategic Initiatives - The company is positioned for sustained momentum in 2026, following the successful integration of McGriff and the launch of the Thrive program[2] - The company launched a three-year program, Thrive, aimed at enhancing brand strategy and operational efficiency, with costs primarily related to severance and lease exit charges[39] - The restructuring program, Thrive, initiated in 2025, is expected to generate savings through process and automation efficiencies[42] Currency and Acquisitions Impact - The company noted that foreign exchange rate movements may impact revenue comparisons, and non-GAAP underlying revenue measures were used to isolate these impacts[30] - The impact of acquisitions and dispositions in 2025 includes a significant adjustment of $1,284 million in U.S./Canada revenue[62] - The company reported a net gain of $35 million from the sale of U.K. pension administration and U.S. health and benefits administration businesses in 2024[63] Future Projections - Total revenue for Marsh Risk in 2025 is projected to be $14,366 million, a decrease of 28% compared to 2024's revenue of $12,536 million[62] - Total Mercer revenue for 2025 is expected to be $6,190 million, down 41% from $5,743 million in 2024[62] - EMEA revenue for Marsh Risk in 2025 is $3,812 million, reflecting a decrease of 52% from $3,530 million in 2024[62] - U.S./Canada revenue for Marsh Risk in 2025 is $8,523 million, which is a decline of 8% from $7,017 million in 2024[62] - Wealth segment revenue for Mercer in 2025 is $2,819 million, down 25% from $2,584 million in 2024[62] - Health segment revenue for Mercer in 2025 is projected at $2,284 million, a decrease of 4% from $2,100 million in 2024[62] - Career segment revenue for Mercer in 2025 is expected to be $1,087 million, down 12% from $1,059 million in 2024[62] - Total international revenue for Marsh Risk in 2025 is $5,843 million, a decrease of 36% from $5,519 million in 2024[62]

Core Insights - Fluke Networks has launched CertiFiber™ Max, the first third-generation optical loss test set (OLTS) tailored for high-density data centre environments, enabling certification of up to 24 fibres in under one second [1][4]. Industry Context - The increasing fibre density and tightening performance margins, driven by AI, cloud, and next-generation digital infrastructure, place pressure on contractors to test and certify complex fibre systems quickly and accurately [2][4]. - Existing testing tools often struggle to keep pace with these demands, either limiting fibre counts or introducing complexity through fan-out cables and adapters, which can lead to errors [2][4]. Product Features - CertiFiber Max offers faster testing, greater accuracy, and long-term flexibility with field-replaceable UniPort™ adapters, supporting various multi-fibre connector types, including 12, 16, and 24 multi-fibre push-ons (MPO) and 16 and 24 MMCs [3][5]. - The solution measures loss, length, and polarity across multiple fibres in under a second, ensuring accuracy through the recommended one-jumper reference method [5]. Market Demand - The adoption of MMC connectors is rising as AI data centres scale rapidly, with MMC technology providing triple the density of MPO connectors and facilitating mass-insertion solutions [5]. - The demand for faster and more accurate performance testing is driven by ultra-low loss standards required by AI, increasing fibre counts, and a shortage of skilled labor [5].

Core Thesis - Marsh & McLennan Companies, Inc. (MMC) is viewed positively due to its asset-light business model, strong client relationships, and long-term growth potential despite recent concerns about moderating insurance premiums [1][5]. Company Overview - MMC operates primarily in the insurance brokerage industry, earning commissions from premiums without assuming underwriting risk, with approximately 75% of its revenue coming from this core brokerage business [2]. - The remaining 25% of revenue is generated from its consulting arm, which does not have the same defensive advantages as the brokerage segment [2]. Market Dynamics - Recent investor concerns focus on the potential slowdown in commission growth due to moderating insurance premiums after years of rapid increases; however, insurance pricing is cyclical, and long-term premium increases are expected as the cost of risk rises globally [3]. - This cyclical nature of insurance pricing supports the long-term earnings potential of MMC [3]. Financial Metrics - MMC currently offers a free cash flow yield of over 5%, with projected earnings growth of approximately 7% CAGR driven by pricing, volume growth, and reinvestment returns [3]. - Valuation multiples for MMC remain below historical averages, with an EV/EBIT of 16 compared to a 10-year mean of around 18, indicating that the market may not fully recognize the stability and growth potential of the business [4]. Investment Opportunity - MMC is characterized as a highly profitable, asset-light business with resilient long-term growth prospects and an undervalued stock, potentially delivering above-average returns of 12% to 15% CAGR over the long term [4].

Group 1 - The start of the new year provides a natural opportunity for portfolio deep cleaning, allowing investors to reassess their holdings and strategies [1] - The focus is on uncovering high-yield investment opportunities for individual investors, emphasizing the importance of clear and actionable insights for better returns [1] Group 2 - The article expresses the author's personal opinions and indicates a beneficial long position in the shares of MMC, highlighting a vested interest in the stock [2]